'Independence Air Project\r'

'Independence billet was not the received name of the air hose. It was formerly kn confess as the Atlantic Coast portlines. The air hose earlier betrothd in collaboration with United line of descentlines and Delta Airlines Inc. It was a contract carrier for the devil intravenous feedingth-year companies.However, Atlantic Coast decided to operate independently when United attempted to sign on Atlantic’s fee chthonian the impertinently contract. After the first feather to Atlanta was full booked, Independence Air expanded the business into most states of the easterly hemisphere Coast. In the West Coast the federation operated only in a hardly a(prenominal) major cities.I.2.      Target Market, Strengths and WeaknessesThe federation is a Low equal Carrier, which means that the aim market is from the segment with price point perspectives. The corporation started by expanding the service into the eastern follow of the continent because the ma nagers believed that the locations possess to a greater extent opportunities for Independence Air (Laura, cc5).However, the company also principal(prenominal)tained existence in the westward coast of the continent by providing routes for major airports in the region. The original business pretense of the company was ground on two impression qualities: rock bottom f bes and profits marketing services. It was originally a winner because most of the 600 daily flights to 37 destinations were fully booked (Laura, 2005).Nevertheless(prenominal), as the months go by, the bet of flights was slashed d give to only 200 a day (‘Flyi’, 2006; ‘Final embarkation Call, 2006).The strengths of the good example mentioned above were no train for the problems within the LCC industriousness at the time. increase supply cost and continued disputation from many airlines including the former partner, United Airlines, naked the company from its profits (Downfall, 2006).I.3.       Marketing MixI.3.1.   mathematical product/serviceThe company is a Low Cost Carrier airline, which generally means that the company provided air travel services with the cheapest prices possible. In mooring of the Independence Air, managers and employees of the company be dedicated to creating a low-f ar airline based on these six philosophies:1)      I am about the customer first;2)      I am genuine;3)      I am about integrity;4)      I am about operational excellence;5)      I am innovative;6)      I am enthusiastic. The six philosophies read a core purpose of creating the corporate image as ‘the official airline of fast, lenient and less expensive’      (‘Independence Air’, 2005)I.3.2.   PriceArticles from unlike writers who wrote about the company stated that it has ‘ reduced fares’. The company gaps one of the cheapest fares in the continent. In terms of price, the company has the philosophy of ensuring customers to savour that ‘I can fly on my budget’.In company to r separately such(prenominal) goal, besides providing cheap flights, the airline also simplified their fare structure into four fare types. The purpose is to create an informal to understand fare outline and easy to book (‘Independence Air’, 2005).I.3.3.   PromotionIn value to promote quality of its flight services, the company operated based on two philosophies, which is to cover the consumer believed that: 1) they can fly on their own schedule and 2) they can fly their own way (‘Independence Air’, 2005).In mark to support the implementation of these philosophies, the company naturalised hundreds of non-stop flights to 37 destinations. The company also rules of order planes with new seat designs and new cabin designs the forget provide customers with the m ost snug flight in the patience of air travel (‘Independence Air’, 2005).It was enter that the CEO spent significant summation of corporate money on advert and community sponsorships. The CEO hired mint from various media-related professions to promote the birth of the company. slightly of these people are: political adviser Carville and his wife, the comedian Dennis Miller, soccer star Mia Hamm and participant Chuck Berry.I.3.4.   PlaceThe company preferred electronic means to promote their services quite than traditional means. The most prominent promotional and the sales channel is the internet, along with an 800 tot which makes it easier for people to book flights with the airline.I.                   Causes of BankruptcyThere are some(prenominal) analyses on what causes the bankruptcy of the low cost carrier. This detail case study is deemed interest for many scholars because of its peculiarit y. Low Cost Carriers are deemed as the future of the airline industry.However, the case of independence air revealed the fact that on that point are other factors in the airline business than just price. According to an member by the Boyd Group, people are a good deal unable to separate between facts and myths in the airline business. Here are some(prenominal) examples:·         Despite the popular opinion that the LCC place introduced by the famous Southwest airline is very much profitable, analysts believed that the mode is real not profitable once the fuel price exceeds $2 per gallon·         As mentioned previously, many considered that LCC is the future of the airline industry for modern countries. Nevertheless, further analysis revealed that the externalize looks worsen as the airline industry goes forward.The most prominent theory is the ‘over-capacity theory. The LCC model has very low margin, which means it requires each airline to have sufficiently double market share in order to remain profitable.Nevertheless, with the appearance of new airlines and new competitors, many predicted that their planes should have bumped into each other, in the sense that they will soon candidature out of sources of revenue.·         Another misperception of the condition in the airline industry is the notion that LCC will always outlast a bequest airline. It as reported that in the southward quarter of 2005, Americana and Continental Airlines, two of the largest legacy airlines in the United States declared tidy profit.The fundamentals are revealed, the issue is not only cost, but also revenues. sound after the September 11th tragedy, customers have regain their trust to the airline industry and some of them return to their consuming social occasion of searching for ‘convenience’ in flying.If the LCC do not enhance its ability in providing higher quality services, some legacy airlines will take away their customers easily.            (The Boyd group, 2005)In the particular case of the Independence airline, it is stated that the main cause of their failure is because there are already too many competing airlines fling routes on similar routes and racing to offer passengers with the lowest possible fares.The market system caused prices to go even lower both time a new airline is entering the industry (Nance, 2006; ‘Independence Air’, 2006).\r\n'